Companies and individuals that violate U.S. export control laws would face much steeper civil fines under this bill. The maximum penalty per violation would rise from $300,000 to $1,200,000, and the alternative penalty tied to the value of the illegal transaction would increase from twice the transaction's value to four times its value. Export controls restrict the sale or transfer of sensitive goods, technology, and software to certain foreign countries, organizations, or individuals for national security reasons. The higher penalties would apply to violations committed after the bill becomes law, giving businesses that export goods or technology a stronger financial incentive to follow the rules. Exporters ranging from large defense contractors to smaller technology companies that ship regulated products overseas would be affected by the increased exposure.
Corporate Benefits
- Export-control civil penalty cap — Raised from $300,000 to $1,200,000 per violation
- Export-control transaction-value penalty multiplier — Raised from two times to four times the violation's transaction value
Congressional Summary
This bill increases civil penalties for violations of U.S. export control laws. Specifically, the bill increases the maximum statutory civil penalty for each violation of any regulation, order, or license issued under the Export Control Reform Act of 2018 (ECRA) to $1.2 million or four times the value of the transaction, whichever is greater. (Currently, the maximum statutory civil penalty for each violation of ECRA is $300,000 or twice the value of the transaction, whichever is greater. The Department of Commerce's Bureau of Industry and Security adjusts this maximum amount annually for inflation.)
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-10-28
- Date Added
- 2026-07-16
- Source
- Congress.gov →
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